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First Gen Corp. has officially sealed a game-changing deal, selling a 20-percent stake in its offshore liquefied natural gas (LNG) terminal in Batangas to Japan’s Tokyo Gas Co. Ltd. This partnership strengthens First Gen’s foothold in the energy sector while bringing in Tokyo Gas’ global expertise to enhance operations at the facility. The agreement cements a deeper collaboration between the two firms as they push for energy security and sustainability in the Philippines.
With the transaction completed, Tokyo Gas now holds a significant 20-percent share in FGEN LNG, while the First Gen Group maintains its 80-percent majority stake. “This subscription will deepen our partnership and enhance synergy that will boost our efforts in support of the Philippines’ energy security and stability, even as we all pursue decarbonization,” said First Gen president and COO Francis Giles Puno. Tokyo Gas’ entry into the project also marks a milestone as its first-ever investment in a commercially operational overseas LNG terminal—underscoring the strategic importance of this venture.
The LNG terminal, developed in collaboration with Tokyo Gas since 2018 and completed in 2023, plays a crucial role in ensuring a steady natural gas supply for First Gen’s power plants. The Department of Energy recently granted FGEN LNG a 25-year permit to operate and maintain the facility, reinforcing its status as an energy project of national significance. The site features a multi-purpose jetty and an onshore gas receiving facility, serving as a key infrastructure for the country’s energy transition.
As the Philippines continues its shift away from coal, LNG is positioned as a vital transition fuel paving the way for wider adoption of renewables. First Gen has already made multiple LNG cargo deliveries, with the first in August 2023, followed by shipments in December 2023, and February, May, and October 2024. With over 3,600 megawatts of clean energy capacity, First Gen remains at the forefront of the country’s sustainable energy movement, leveraging strategic partnerships to drive progress in the industry.
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(Source: Marine Link | Manila Times | Business World)
